Efficient inventory management is integral to the success of every business. Without essential supplies and inventory, operations pause and expenses add up. Inventory management is an involved process, and there are many areas where you can make costly mistakes. Here are five common ones to avoid:
Poor Demand Forecasting
Businesses that fail to properly forecast demand run the risk of overstocking or understocking. Both lead to increased costs. If you overstock, you spend more capital stocking inventory you don’t need and run the risk of spoilage. Understocking means you fail to order enough inventory to keep up with demand. This can slow operations and lead to significant costs. Automation is a great tool for forecasting demand. By analyzing historical data and real-time trends, automated inventory systems help businesses make accurate, data-driven decisions that reduce waste and boost efficiency.
Not Utilizing Real-Time Tracking
Tracking inventory the old-fashioned way by hand opens the doors for mistakes and losses. If the way you track your inventory is outdated, chances are your numbers are off and you’re losing money. Real-time tracking is an automation tool that helps you track your inventory to the minute. It takes all of the manual work out of tracking inventory and allows you to easily see exactly what you have on hand, what you’ve ordered, and what deliveries you’re expecting. That way, you can accurately place orders and keep up with inventory.
Unorganized Storage Rooms
Inventory in cluttered, unorganized storage rooms often gets lost in the shuffle. This wastes time as co-workers search for inventory and can even pause operations if the right items can’t be found. These delays lead to losses. On top of that, an unorganized workspace can hurt morale. Co-workers tend to be more satisfied when their environment is clean and organized, not only because it allows them to do their job more efficiently, but also because it creates a more pleasant place to work.
Failing to Properly Train Staff
When it comes to inventory management, accuracy, efficiency, and timeliness are critical. If your staff isn’t trained to prioritize all three, your operations suffer. Without the proper guidance and training to do their job correctly, co-workers may struggle to meet the demands of business, causing disruptions across your entire operation. This leads to disorganization, which can trigger delays, frustrate customers and ultimately impact your bottom line.
Poor Supply Chain Management
The supply chain is at the heart of inventory management. If your supply chain is unorganized, then your operations will be unorganized. Juggling multiple vendors, having poor communication and dealing with inconsistencies are often responsible for disruptions in the supply chain. Partnering with a single-source supplier can simplify the supply chain, allowing you to better manage your inventory and enhance efficiency.
For better inventory management, partner with Veritiv Pollock—a trusted single-source supplier of business essentials. From cleaning products to packaging equipment, we supply everything you need for efficient operations. With our intuitive platform, you can easily track inventory, orders and deliveries all in one place. Contact us today to get started!
